Natural Gas Futures: Downside seen as temporary

Open interest in natural gas futures markets dropped by around 11.8K contracts at the end of last week, clinching the second daily drop in a row considering advanced readings from CME Group. In the same line, volume shrank for the second straight session, now by around 139.5K contracts.

Natural Gas remains firm around $5.00

Friday’s retracement in prices of natural gas from 2021 highs above the $5.00 mark per MMBtu was on the back of shrinking open interest and volume, suggesting a deeper correction could be short-lived. That said, the rally in the commodity looks healthy and could resume the upside to the $5.00 mark and above in the short-term horizon.